Can a lender pursue a deficiency judgment in a foreclosure?

Yes, a lender in Arizona can pursue a deficiency judgment in a foreclosure. A deficiency judgment is a court order that can require a borrower who has lost a home in foreclosure to pay back the amount that is still owed on the loan. In Arizona, there is a statute of limitations that limits the lender to two years to pursue a deficiency judgment. This means that the lender can only pursue the deficiency judgment if they file a lawsuit within two years of the foreclosure sale. The lender must also get approval from the court to pursue a deficiency judgment before they can do so. If the court approves it, the lender can collect the unpaid balance from the borrower by garnishing their wages, bank accounts, or other assets. Foreclosure laws in Arizona also prevent lenders from pursuing a deficiency judgment if the borrower is able to show that they do not have the ability to pay such an amount. If this is the case, then the court will not grant a deficiency judgment and the borrower will not be responsible for the unpaid balance. Overall, a lender in Arizona can pursue a deficiency judgment in a foreclosure, but the court must approve it and the lender must do so within the two-year statute of limitations. Additionally, if the borrower can show that they are not able to pay the balance, then the court may not grant a deficiency judgment.

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